As inflation rises, LikeFolio data reveals a tale of two consumers: affluent ones who (so far) appear resilient, and the rest who are starting to pick and choose where and how they want to spend.
Aritzia (ATZ.TO) operates in the affluent, luxury sweet spot.
The Canada-based retailer produces on-trend items that are much higher quality vs. fast fashion names like Shein and Nasty Gal, but cost MUCH less than true high fashion names like Burberry and Prada.... which it deems, "everyday luxury."
That’s a great place to be, with Luxury fashion demand hitting all-time highs this fall, on pace for +35% YoY growth.
While we are seeing strength in many high-end fashion brands, Aritzia leads the rest:
To be clear, Aritzia's consumer base is affluent...
In fact, a pair of pants on sale will still cost you $99…. but this is a welcome reprieve from the same Prada pants for $1500.
I guess even affluent consumers need to be sensible, right?
Regardless, LikeFolio data suggests the Aritzia brand is well positioned for future growth, with brand awareness climbing to all-time highs just in time for the holiday shopping season.
Bottom line: ATZ is a stock worth putting on your radar.